PNB raises three-month MCLR to 8.50%; one-year rate steady at 8.80%
- Punjab National Bank raises three-month MCLR to 8.50% from 8.45%
- One-year MCLR remains steady at 8.80%
- All other tenors including overnight and three-year rates unchanged
- Repo Linked Lending Rate stays at 8.10%
*this image is generated using AI for illustrative purposes only.
Punjab National Bank has revised its Marginal Cost of Funds based Lending Rate (MCLR) for the three-month tenor to 8.50%, effective September 1, 2026. The one-year MCLR remains unchanged at 8.80%.
MCLR rate details
The bank increased the three-month MCLR from 8.45% to 8.50%, marking a 5 basis point hike. All other tenors, including overnight, one-month, six-month, and three-year rates, remain unchanged. The Repo Linked Lending Rate (RLLR) at 8.10% and Base Rate at 9.50% also remain steady.
The table below summarises the revised rates:
| Tenor | Previous Rate | Revised Rate | Change |
|---|---|---|---|
| Overnight | 8.00% | 8.00% | Unchanged |
| One Month | 8.25% | 8.25% | Unchanged |
| Three Month | 8.45% | 8.50% | +5 bps |
| Six Month | 8.65% | 8.65% | Unchanged |
| One Year | 8.80% | 8.80% | Unchanged |
| Three Years | 9.10% | 9.10% | Unchanged |
The decision reflects a selective adjustment in short-term lending costs while maintaining stability in longer-term retail and corporate loan pricing benchmarks.
Historical Stock Returns for Punjab National Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.01% | -1.99% | +2.31% | -11.75% | +12.60% | 0.0% |
How might this selective 5 bps hike in the three-month MCLR impact the EMIs of short-term retail borrowers compared to those with longer-term fixed loans?
What does Punjab National Bank's decision to keep longer-term tenors unchanged suggest about its outlook on future inflation and liquidity conditions?
Will other public sector banks follow suit with similar selective adjustments to their short-term lending rates in the coming quarter?
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